What amount must the company borrow during february

Assignment Help Cost Accounting
Reference no: EM133068039

Question - Truck Company is preparing a cash budget for February (1st month of business). The company expects to have $150,000 cash at the beginning of February and anticipates total February sales of $800,000, consisting of 25% cash sales and 75% credit sales. The company sets its selling price at 160 percent of the cost of purchases and pays for each month's purchases on cash at the end of the month. Other cash disbursements are $20,000 per month plus 4% of total sales. The Company has an agreement with its bank to maintain a cash balance of $100,000. What amount, if any, must the company borrow during February?

Reference no: EM133068039

Questions Cloud

What was the balance on the loan at the end of two years : Taylor had a loan of $101,000 and made payments of $2,500 at the end of every month to settle it. What was the balance on the loan at the end of two years
Cash flow under different hedging alternatives : P&G Limited considers hedging its receivables of €500000 due in 4 months. It can obtain a forward contract to purchase Euro in 4 months.
Equivalent annual cost of the project : If a project has an NPV of $140,00 over 7 years with a 10% discount rate, what is the equivalent annual cost of the project rounded to the nearest dollar?
Examine the techniques of testing controls : Examine the techniques of testing controls that should be applied by the auditing firm. Given an example for each technique identified
What amount must the company borrow during february : The Company has an agreement with its bank to maintain a cash balance of $100,000. What amount, if any, must the company borrow during February
Collectability of the outstanding receivable balance : Makeit Incorporated received a letter on October 25, 2013 from Gesters Corporation; one of the companies long standing customers who has a receivables balance w
Determine the maximum one-month loss : Based on data for the last 50 months, it estimates the standard deviation of monthly percentage changes exchange rate for each currency against USD is produced
Prepare the journal entry for these transactions : Purchased 180 shares of capital stock to be held as treasury stock, paying $55 per share. Prepare the journal entry for these transactions
What is the range of the forward price : What is the range of the forward price F0, for which the trader has no arbitrage opportunities?

Reviews

Write a Review

Cost Accounting Questions & Answers

  What is the annual interest rate if the present value

What is the annual interest rate if the present value is $100, future value is $200, and the time period is 5 years? Calculate the present value/

  How much will you pay for the company stock today

Stock values: Warren Corporation will pay a $3.60 per share dividend next year. The company pledges to increase its dividend by 4.5 percent per year indefinitely. If you require a 13 percent return on your investment, how much will you pay for the..

  Determine the tuition fee revenue for the period December

Parents can pay the full tuition fee of P70,000 each at the start of the every semester. Determine the tuition fee revenue for the period December

  Calculate timor leste predetermined overhead rate

Calculate Timor Leste's predetermined overhead rate for 2017 assuming Timor Leste estimates total manufacturing overhead costs of $450,000

  What is the proposed profit of the company in a new market

The management proposes to increase the production by 3,000 units for sales in the foreign market. What is the proposed profit of the company in a new market

  Discuss fundamental of cost management

Discuss any TWO of the concepts or tools Fundamental of Cost Management and how you would recommend the company uses

  What is the different between abc and traditional costing

What is the different between ABC and traditional costing and what are the strength and weakness of using ABC? pLease explain In detail

  What is the difference between product costs and period cost

What is the difference between product costs and period costs? What are the components included in each of the three types of inventory in a manufacturing operation?

  How many slots should wzmu sell in advance

How many slots should WZMU sell in advance? and now assume that if a slot is not sold in advance and is not sold at the last minute, it will be used for a promotional message worth $2500. Now how many slots would WZMU sell in advance?

  Compute applied over- or underapplied amount for july

Normal annual capacity for Sony Company is 40.000 machine hours, Compute the applied factory overhead and the over- or underapplied amount for July

  What would be the difference in profit before income taxes

What would be the difference in profit before income taxes by acquiring the new machine as opposed to retaining the present one

  How to determine the costs allocated to the retai

Determine the costs allocated to the retail and industrial divisions using the step-down method. The personnel department costs should be allocated.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd